Tata Capital IPO likely to launch in early October 2025, aims to raise over ₹17,000 crore

Earlier it was reported that the company may launch its IPO by September 30.

Tata Capital is looking to raise USD 2 billion (over ₹17,000 crore) via its maiden initial share sale at a valuation of USD 18 billion.

The IPO will be a mix of a fresh issuance of up to 21 crore shares and an offer for sale (OFS) of up to 26.58 crore shares, totalling 47.58 crore shares, according to the updated Draft Red Herring Prospectus (DRHP) filed last month.

Under the OFS, promoter Tata Sons will sell 23 crore shares, while International Finance Corporation (IFC) will divest up to 3.58 crore shares.

Presently, Tata Sons owns an 88.6% stake in Tata Capital, while IFC holds 1.8%.

Proceeds from the fresh issue will be deployed to augment Tier-I capital and fuel lending growth.

"In addition, our Company expects to receive the benefits of listing of the Equity Shares on the Stock Exchanges, including enhancement of our Company’s brand name and creation of a public market for our Equity Shares in India," the firm said.

Tata Capital delivered strong financials in the first quarter of the financial year 2025-26, reflecting a 120.55% increase from ₹472 crore PAT in the year-ago period. Total income jumped to ₹7,692 crore as against ₹6,557 crore in the June 2024 quarter.

The offer is being undertaken to meet RBI's listing mandate in relation to upper-layer NBFCs, which need to be listed within three years of classification. Tata Capital Limited was designated as an upper-layer NBFC in September 2022.

HDB Financial Services, the non-banking unit of HDFC Bank, hit stock markets in June with a ₹12,500 crore issue. Bajaj Housing Finance made a strong market debut in September 2024.